We have a number of people who come to the CBI for help in buying a business or to start their own business. Sometimes it’s a short conversation when they come looking for the grant money they believe we have. We don’t have grant funds or grant applications to buy a business or start a business. We don’t have access to a pool of investors who loan money without a sound business plan, or know of any that will loan 100% of the cost of a business even with a great plan.
We do have great banking connections and are happy to work with you as you develop a business plan and prepare to speak to bankers, or can connect you with the TSBDC to help you prepare for an SBA backed loan. In either of these cases you will still need to have skin in the game and have your own resources to put into the business. It’s very rare to get 100% financing for a business.
What we are happy to do is to brainstorm the things you need to do to make the best informed decisions about buying or starting a business or growing your existing business.
If you are buying a business you’ll need to understand the current state of the business including the income, expenses and profit. If the seller isn’t willing to share the 3 most recent years of business financial statements, it’s a red flag. If they have been in business for less than 3 years, then you need the financial statements since inception. If they don’t have financial statements, how can you know what you are buying, or what a fair price is?
If you are starting your own business we can help you develop a list of one-time startup costs, fixed costs and variable costs so that you can determine your breakeven point and cash flow projections.
We can help you determine who your customers are, what problem they have that you will be addressing, what your solution is and why you provide the benefit the customer is looking for as well as who your competition is and what your advantage is over the competition.
Every business needs a marketing strategy. We can help you develop one as well as look at low cost, no cost and all the other options for getting your message to your customers. We’ll help you understand where your revenue streams are, how to maximize them and how to minimize your expenses. We’ll help you understand the financial statements so that you will know the answers to the questions that bankers and potential buyers will be asking you someday.
As your business grows we’ll be happy to help you find excellent resources for marketing, bookkeeping, banking, insurance needs, hiring and firing procedures, and any other issue that you face. We’ll develop workshops to address the common issues we see as we meet with clients.
You will leave with homework and we’ll be here to help you move on to the next step as you complete the work we outlined together.
I look forward to helping you validate your business concept, grow your business, or determine if buying a business is a good decision.
